Cash for Clunkers

Link

This could be the dumbest economic policy in my lifetime. It might have prompted more sales in the summer of 2009. However, most of these sales were not to people who are buying an "extra" car. It just prompted them to move up their car purchase, or they were going to buy one anyway. Therefore, all of the people who purchased a vehicle likely would have purchased one anyway in the next year or two.

Further, this decreased the number of used cars in the market. That forced the price higher. Many individuals who we would think of as the "working poor" rely on "clunkers" for transportation. Making their life more difficult by raising the price of vehicles isn't good policy, if you care at all about the poor.

Oh, and for this policy, all we had to do was pay $24,000 per "clunker".

Sowell's "The Housing Boom and Bust"

The Housing Boom and Bust

Earlier I posted book recommendations and I recommended books by Thomas Sowell. Currently I am reading Sowell's new book - "The Housing Boom and Bust" - and it is also great. Sowell is truly gifted at organizing relevant material in a concise and meaningful way.

It really gives a detailed explanation of all the factors that went into the boom - including some truly horrible government policies. Warning - It is tough to read this book without getting angry at elected officials of both parties.

Listen to my radio interview

Here is a link to a radio interview I did for the "On the Mark" show on WKOK radio.

The show is 90 minutes - I come on at about minute 34 or so - and am on for the rest of the broadcast.

http://www.megaupload.com/?d=NGI80ORB

I am quoted in an article

From the Los Angeles Business Journal

http://www.labusinessjournal.com/article.asp?aID=140749

Upcoming radio appearance:

Tuesday, September 22nd
AM 1070 WKOK
The "On the Mark" program from 9:00-10:00 AM.

You can listen live online at http://www.wqkx.com/1070_WKOK/WKOK_HOME.htm

What economics books should a non-economist read?

Economics Books for Non-Economists

Students (and sometimes non-students) will often ask for recommendations on books to read. Here are a few books I recommend for those who want to learn more about economics:

1. Anything by Thomas Sowell. He writes clearly, his assertions are well-backed by research, and his books are stunningly insightful. If you don't know where to start, try "Economic Facts and Fallacies", or "The Quest for Cosmic Justice". I am currently reading "Black Rednecks and White Liberals". What I have learned in the first 20 pages was worth the price of the book many times over. One note - Sowell isn't light reading - but it is well worth the time and effort.

2. Freakonomics. This is a fun-to-read book that discusses how Steven Levitt (and others) have used economic methods and thinking to examine many different issues. Freakonomics 2 (superfreakonomics is coming out this week). I will certainly be purchasing it ASAP. I am hoping it is as entertaining ast he first.

3. Free to Choose. Milton Friedman's classic about capitalism and the economy is now 30 years old, but it still seems relevant.

Some other good economics books include: Nudge, What it Means to be a Libertarian, and Discover your Inner Economist: Use Incentives to Fall in Love, Survive Your Next Meeting, and Motivate Your Dentist.

Some non-economics books I like and that have some academic value:

- Malcolm Gladwell books (The Tipping Point, Blink, and Outliers). His books are well-researched and thought provoking. He generalizes his conclusions to much, but other than that these books are terrific.

- Gang Leader for a Day. A fascinating book about a sociology doctoral student who does research with a street gang. While not an economics/business book, it is interesting to see how a gang operates and the incentives/disincentives the gang leaders provide their employees.

A big poker win

Big Poker Tournament Win

As some of you may know, I enjoy playing poker. On Sunday, I had a huge win - winning a seat into the $10,000 buy in World Series of Poker Main Event, along with $2,000 for expenses.

I would love to play it, but unfortunately, just don't think I will be able to - I just have to take the cash instead (. Our family is traveling until just before the start of the tournament, which would make the travel tricky. Further, it is quite a burden on my wife to watch all 3 kids while I travel, so I told her (prior to winning this seat) that I would not go out to Vegas this year for the WSOP, but would go next year instead.

What makes turning this down tough is that pokerstars throws extra incentives to play - $1600 worth of their player points, and a tournament entry that is worth between $500-$1000.

That being said, the opportunity cost to attend this year is just too high (airline tickets, hotels, and other travel expenses, along with time for both me and my wife). I will have to settle for the money :)

For those who are interested in viewing the tournament I won to win this entry - this link shows all my hands. You need to sign up for pokerXfactor to view this (it is free to sign up).

http://www.pokerxfactor.com/HA194308/5341_20090615_152127/5341